This grant application seeks renewed funding for the study "Community Alternatives for the Treatment of Schizophrenia" (R12 MH20123). This study has been comparing a community residential treatment program for young, newly diagnosed schizophrenics using a para-professional staff and minimal medication with the established county mental health system that relies heavily on drug treatment. Continued funds are needed for the current research to be responsive to the last review committee's recommendations to "prepare an application which would focus more on the nature of the psychosocial process which produces positive changes in patients, and on differential responsiveness to different types of treatment." The new research strategy proposes to study three major aspects of the effectiveness of the experimental facility. These include: creating procedures to measure the quality of interpersonal interactions; developing a methodology to examine the substantive ways in which subjects emulate staff; relating family environment to schizophrenic symptoms and outcome; measuring the experimental setting's therapeutic value as a surrogate family; and establishing predictive subgroups to determine what type subjects receive the most benefit from alternative rather than traditional treatment. It is also shown how to make efficient use of the data that has been collected, and the system that has been established to collect it.